§ 19-14.10-16. Investigation and examination authority.
In addition to any authority allowed under this chapter the director, or the director's
designee, shall have the authority to conduct investigations and examinations as follows:
(1) For purposes of initial licensing, license renewal, license suspension, license conditioning,
license revocation or termination, or general or specific inquiry or investigation
to determine compliance with this chapter, the director, or the director's designee,
shall have the authority to access, receive and use any books, accounts, records,
files, documents, information or evidence including but not limited to:
(i) Criminal, civil, and administrative history information, including non-conviction
data, or other non-public record as specified in § 38-2-2(4)(D), specifically, or any other criminal, civil, and administrative record deemed non-public
under § 38-2-1 et seq., generally; and
(ii) Personal history and experience information including independent credit reports obtained
from a consumer reporting agency described in § 603(p) of the federal Fair Credit
Reporting Act, 15 U.S.C. § 1681a(p); and
(iii) Any other documents, information, or evidence the director, or the director's designee,
deems relevant to the inquiry or investigation regardless of the location, possession,
control, or custody of such documents, information, or evidence.
(2) For the purposes of investigating violations or complaints arising under this chapter,
or for the purposes of examination, the director, or the director's designee, may
review, investigate, or examine any licensee, individual, or person subject to this
chapter, as often as necessary in order to carry out the purposes of this chapter.
The director, or the director's designee, may direct, subpoena, or order the attendance
of and examine under oath all persons whose testimony may be required about the loans
or the business or subject matter of any such examination or investigation, and may
direct, subpoena, or order such person to produce books, accounts, records, files,
and any other documents the director, or the director's designee, deems relevant to
the inquiry.
(3) Each licensee, individual, or person subject to this chapter shall make available
to the director, or the director's designee, upon request, the books and records relating
to the operations of such licensee, individual, or person subject to this chapter.
The director, or the director's designee, shall have access to such books and records
and interview the officers, principals, mortgage loan originators, employees, independent
contractors, agents, and customers of the licensee, individual, or person subject
to this chapter concerning their business.
(4) Each licensee, individual, or person subject to this chapter shall make or compile
reports or prepare other information as directed by the director, or the director's
designee, in order to carry out the purposes of this section including but not limited
to:
(i) Accounting compilations;
(ii) Information lists and data concerning loan transactions in a format prescribed by
the director, or the director's designee; or
(iii) Such other information deemed necessary to carry out the purposes of this section.
(5) In making any examination or investigation authorized by this chapter, the director,
or the director's designee, may control access to any documents and records of the
licensee or person under examination or investigation. The director, or the director's
designee, may take possession of the documents and records or place a person in exclusive
charge of the documents and records in the place where they are usually kept. During
the period of control, no individual or person shall remove or attempt to remove any
of the documents and records except pursuant to a court order or with the consent
of the director, or the director's designee. Unless the director, or the director's
designee, has reasonable grounds to believe the documents or records of the licensee
have been, or are at risk of being altered or destroyed for purposes of concealing
a violation of this chapter, the licensee or owner of the documents and records shall
have access to the documents or records as necessary to conduct its ordinary business
affairs.
(6) In order to carry out the purposes of this section, the director, or the director's
designee, may:
(i) Retain attorneys, accountants, or other professionals and specialists as examiners,
auditors, or investigators to conduct or assist in the conduct of examinations or
investigations;
(ii) Enter into agreements or relationships with other government officials or regulatory
associations in order to improve efficiencies and reduce regulatory burden by sharing
resources, standardize or uniform methods or procedures, and documents, records, information
or evidence obtained under this section;
(iii) Use, hire, contract, or employ public or privately available analytical systems, methods,
or software to examine or investigate the licensee, individual, or person subject
to this chapter;
(iv) Accept and rely on examination or investigation reports made by other government officials,
within or without this state; or
(v) Accept audit reports made by an independent certified public accountant for the licensee,
individual, or person subject to this chapter in the course of that part of the examination
covering the same general subject matter as the audit and may incorporate the audit
report in the report of the examination, report of investigation or other writing
of the director, or the director's designee.
(7) The authority of this section shall remain in effect, whether such a licensee, individual,
or person subject to this chapter acts or claims to act under any licensing or registration
law of this state, or claims to act without such authority.
(8) No licensee, individual, or person subject to investigation or examination under this
section may knowingly withhold, abstract, remove, mutilate, destroy, or secrete any
books, records, computer records, or other information.